Chargebacks

The cause of nearly all chargebacks is so called “Friendly Fraud” - dishonest people who order
and take delivery of merchandise or a service only to file a frivolous credit card dispute in an
attempt to enjoy the merchandise or service without paying for it.

In the real world this is known as shoplifting or stealing and everyone knows
you will go to jail if you get caught doing it. On the internet however, it’s a
regular and consistent pattern of behavior for unethical people who want to steal
from you and get something for absolutely nothing.

Pre-identity theft days, credit card companies would only process disputes that
were the result of a lost or stolen card being used by someone other than the
authorized cardholder. Today they allow disputes for just about any reason at
all, and many people know this and are taking advantage of it.

Take Action

Many merchants believe that there is nothing they can do about it. They think
Chargebacks are final, and as result, they don’t respond to the chargeback notices.
In reality, you must take one or two steps to fight and win against chargeback abuser.

1. Dispute the chargeback with your bank immediately upon receipt of the notice

2. If the bank upholds the chargeback, you have the absolute right to go after
the consumer directly for the amount of the chargeback plus all other costs
you incur as a result of it, such as bank-fees